Growing Government Support: The UAE remains the most active in attracting funding, with UAE-headquartered start-ups garnering 30% of all deals and 70% of total funding. This is attributed to continued govt. support, corporate venture interest and growing investor appetite for start-ups. Favorable legislation and government initiatives are keys to supporting the adoption of mobile wallets.
Dubai Government has committed to
building a free trade zone specifically dedicated to e-commerce, Dubai
CommerCity, split into three clusters. The three clusters are: (1) Business
- home to modern landscaped buildings with Grade A premium offices; (2)
Logistics - state-of-the-art dedicated and multi-client warehouse units with
scalable pay-as-you-go pricing models; and (3) Social - housing restaurants,
cafes, exhibitions and events.
Dubai Executive Council approved
the Dubai eCommerce Strategy with a primary goal of with the aim of
solidifying the emirate's position as a hub for global ecommerce.
The objective is to attract more
FDI in the ecommerce sector and increase the market share of Dubai-based firms
in terms of local & regional distribution to reach AED 24Bn by 2022 through
slashing business cost of ecommerce activities by 20%.
UAE
E-Commerce Logistics Market Overview
Challenges
in UAE E-Commerce Sector: One of the
reasons behind the relatively slow uptake of e-commerce in the country is the
last mile logistics complexities. Same day delivery expectations demand a lot
from e-commerce companies and due to infrastructure difficulties like the
absence of street addresses and lack of penetration of courier services,
delivery speeds get affected. Moreover, around 60% of the total logistic
cost is spent on Last Mile Deliveries in UAE. Timely scheduling is crucial for
effective deliveries as a customer’s unavailability to receive package despite
multiple attempts, leads to increase in the operational costs. Growing
expectations of replacement or refund of online orders is a challenge
e-commerce companies need to tackle. Players should lay emphasis on
strengthening reverse logistics channels, keeping a scope for managing incoming
inventory at the fulfillment centre(s)/warehouses and quicker replacements.
Impact of
COVID-19 on UAE E-Commerce Logistics Market: The UAE was one of the top-performing economies globally before the
sudden outbreak of the new novel coronavirus in China. However, the pandemic
has positively impacted the growth of e-commerce market in UAE. Digitalization
was already becoming an emerging trend in the UAE, the onset of COVID-19 acted
as a catalyst and accelerated the call to action. China has become a
significant trade partner of the UAE amidst this global lockdown.
Revenues for brick and mortar
retailers have also declined dramatically in recent months, prompting many
stores to shift or expand their presence online, while also quickly building
out their ability to process cashless and contactless payments. A prominent
example includes the Dubai Mall’s partnership with Noon to create a virtual
store to continue to engage with customers online. With increased customer use
of various online channels, vertical and horizontal e-commerce platforms across
certain categories – pharmacies, groceries, essentials, and many more – have
witnessed a significant surge in sales. The region’s biggest online baby shop,
Mumzworld, for instance, reported an 800% growth in demand from January to
March alone. Other e-commerce platforms such as Amazon and Noon have also
reported a considerable rise in e-commerce sales.
Analysts at Ken Research in their
latest publication “UAE E-Commerce
Logistics Market Outlook to 2025 – Driven by Growth in Online Shoppers along
with Introduction of New Age Technologies by Logistics Players”
observed that the e-commerce and e-commerce logistics market in UAE has a great
potential to grow supported by emerging e-commerce players in the
country. Covid-19 outbreak has further accentuated the growth of the
market by shifting major retailers on online platform for sustenance in the
market. UAE E-Commerce Logistics Market is expected to grow at a CAGR of 15.8%
on the basis of number of shipments delivered over the forecast period
2020-2025.
Key Segments
Covered
- By Accepted & Returned Orders
- Accepted Orders
- Returned Orders
- By Channel
- 3PL Players
- E-Commerce Merchants
- By Type of Shipments
- Domestic Shipments
- International Shipments
- By Area of Delivery
- Intercity
- Intracity
- By Mode
- Ground Shipments
- Air & Sea Shipments
- By Delivery Period
- Same Day Delivery
- 1-3 Day Delivery
- More than 3 Day Delivery
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- By Type of Products
- Fashion & Accessories
- Consumer Electronics & Media
- Foods & Personal Care
- Home Care & Furniture
- Toys & Video Games
- Others (Consumer Health, Digital Music, Pet
Care, etc.)
- By Payment Mode
- Cash on Delivery
- Credit & Debit Cards
- Others (Digital Wallets, Paypal, GPay, etc.)
- Captive and 3PL E-Commerce Warehousing
- Warehousing Concentration in UAE
E-Commerce
Logistics Companies Covered
- Aramex
- iMile
- Jeebly
- Shipa
- Fetchr
- Emirates Post
- Team Express
- Quiqup
- Time Express
E-Commerce
Marketplace Platform Covered
- Amazon
- Noon
- Namshi
Key Target
Audience
- 3PL Logistics Companies
- Integrated Logistics Companies
- E-Commerce Marketplace Platform
- Retail Companies
- Logistics/Supply Chain Industry Associations
Time Period
Captured in the Report:-
- Historical Period – 2015-2020
- Forecast Period – 2020-2025
Key Topics
Covered in the Report
- UAE
E-Commerce Transportation Market Future Outlook
- Cross Comparison- Major E-Commerce Players in
UAE
- UAE E-Commerce Logistics Market Overview
- Cost Component for UAE E-commerce Logistics
Industry
- UAE E-Commerce Seasonal Demand
- UAE E-Commerce Logistics Market Size
- UAE E-Commerce Logistics Market Segmentation
2020
- UAE E-Commerce Warehousing Landscape
- UAE E-Commerce Warehousing Clusters
- UAE E-Commerce Shipments Pricing Analysis
- UAE E-Commerce Return Logistics Overview
- UAE E-Commerce Logistics Market Growth Drivers
- UAE E-Commerce Logistics Market Trends &
Developments
- UAE E-Commerce Logistics Market Government
Role and Initiatives
- UAE E-Commerce Logistics Market Logistics
Constraints
- UAE E-Commerce Logistics Market SWOT Analysis
- Competitive Landscape of UAE E-Commerce
Logistics Market
- UAE E-Commerce Logistics Market Cross
Comparison
- Future Market Size and Segmentations, 2020-2025F
- Covid-19 Impact on UAE E-Commerce Logistics
Market
- Analyst Recommendations
Related
Reports
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Ankur
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